Superhouse is an attractive growth stock: revenue grew 18.4% and EBITDA 27.3% annually over the last three years
06-06-2014 • About Superhouse (
$SUPERHOUSE) • By InTwits
Have you thought about Superhouse as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Superhouse showed fast growth in the last financial year. The company's revenue surged on 28.1% in FY2014. The growth also happened in EBITDA of 50.8% for the same period.
If we look for the longer period the company showed fast revenue growth of 18.4% from FY2011 to FY2014 annually. EBITDA surged on 27.3% from FY2011 to FY2014 annually.
Superhouse ($SUPERHOUSE) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 9,183 | 4,533 | 5,351 | 5,876 | 7,530 |
|---|
| Revenue growth, % | | -50.6% | 18.1% | 9.8% | 28.1% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 421 | 428 | 580 | 585 | 882 |
|---|
| EBITDA growth, % | | 1.5% | 35.8% | 0.8% | 50.8% |
|---|
| EBITDA margin, % | 4.59% | 9.43% | 10.8% | 9.96% | 11.7% |
|---|
| Net Income | 152 | 179 | 244 | 223 | 371 |
|---|
| Net Income margin, % | 1.66% | 3.95% | 4.56% | 3.80% | 4.92% |
|---|
| |
| CAPEX | 243 | 240 | 290 | 265 | 179 |
|---|
| CAPEX/Revenue, % | 2.64% | 5.29% | 5.42% | 4.51% | 2.38% |
|---|
| Debt | 1,006 | 1,190 | 1,356 | 1,679 | 1,925 |
|---|
| Cash | 56 | 79 | 117 | 76 | 120 |
|---|
| Net Debt/EBITDA | 2.3x | 2.6x | 2.1x | 2.7x | 2.0x |
|---|
| |
| ROIC, % | 15.5% | 13.4% | 16.7% | 14.1% | 19.2% |
|---|
| ROE, % | 13.5% | 14.0% | 16.6% | 13.2% | 19.0% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. Superhouse's EBITDA margin surged on 1.70 pp from 10% to 11.7% in FY2014. If we look for the longer period the company showed fast EBITDA margin growth of 2.30 pp from 9.40% in FY2011 to 11.7% in FY2014.
We call Superhouse an attractive growth stock as together with the growth it delivers high ROIC at 19.2%. Three years ago it was lower at 13.4%. Average ROIC for the last three years was 16.7%.
The company showed fast Net Income margin growth of 1.10 pp from 3.80% to 4.90% in FY2014. In the last 3 years the company showed fast Net Income margin growth of 1 pp from 3.90% in FY2011 to 4.90% in FY2014.
Superhouse operates at ROE of 19.0%. It's average ROE for the last three years was 16.3%.
Capital expenditures (CAPEX)
Superhouse's CAPEX/Revenue was 2.38% in FY2014. The company's CAPEX/Revenue dropped on 2.91 pp from 5.29% in FY2011 to 2.38% in FY2014. For the last three years the average CAPEX/Revenue was 4.10%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 2.0x Net Debt/EBITDA. In the longer period leverage dropped on 0.55x from 2.60x in FY2011 to 2.05x in FY2014.
Peers in Footwear
Below we provide Superhouse benchmarking against other companies in Footwear industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Relaxo Footwears ($RELAXO) | | -60.7% | 25.0% | 16.8% | 20.0% |
| |
|---|
| Median (1 company) | | -60.7% | 25.0% | 16.8% | 20.0% |
|---|
| Superhouse ($SUPERHOUSE) | | -50.6% | 18.1% | 9.8% | 28.1% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Relaxo Footwears ($RELAXO) | 5.2% | 10.5% | 11.2% | 10.9% | 12.2% |
| |
|---|
| Median (1 company) | 5.2% | 10.5% | 11.2% | 10.9% | 12.2% |
|---|
| Superhouse ($SUPERHOUSE) | 4.6% | 9.4% | 10.8% | 10.0% | 11.7% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Relaxo Footwears ($RELAXO) | 5.3% | 9.1% | 5.6% | 8.3% | 5.9% |
| |
|---|
| Median (1 company) | 5.3% | 9.1% | 5.6% | 8.3% | 5.9% |
|---|
| Superhouse ($SUPERHOUSE) | 2.6% | 5.3% | 5.4% | 4.5% | 2.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Relaxo Footwears ($RELAXO) | 32.4% | 17.4% | 21.2% | 19.9% | 24.1% |
| Nb Footwear ($NBFOOT) | -18.9% | -23.3% | | | |
| |
|---|
| Median (2 companies) | 6.8% | -3.0% | 21.2% | 19.9% | 24.1% |
|---|
| Superhouse ($SUPERHOUSE) | 15.5% | 13.4% | 16.7% | 14.1% | 19.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Relaxo Footwears ($RELAXO) | 1.6x | 2.1x | 1.8x | 2.0x | 1.3x |
| |
|---|
| Median (1 company) | 1.6x | 2.1x | 1.8x | 2.0x | 1.3x |
|---|
| Superhouse ($SUPERHOUSE) | 2.3x | 2.6x | 2.1x | 2.7x | 2.0x |
